Montreal-based Gildan, which supplies T-shirts and other basic clothing items to screen-printers, raised its quarterly dividend to 10.8 cents per share from 9 cents.

The company also makes private-label and branded socks for mass-market retailers, but has been shifting its focus to its own brands such as Gildan underwear and Gold Toe socks.

Gildan forecast lower-than-expected earnings for the current quarter, saying the first half of fiscal 2014 would be hurt by higher cotton costs. The September-December quarter is the seasonally weakest period for its printwear business.

The company said it expected first-quarter earnings of 33 cents to 35 cents per share, below the average analysts' estimate of 42 cents.

Gildan's 2014 profit forecast of $3.00-$3.10 per share also fell short of the average estimate of $3.15.

Still, Gildan said it expected net sales of $450 million for the current quarter, well above the average analyst estimate of $380 million, according to Thomson Reuters I/B/E/S.